Brazil accounts for 5.6% of global solar demand; one of the largest consumers on the planet -survey

RIO DE JANEIRO, BRAZIL – The Brazilian solar energy market was responsible for 5.6% of the total global demand for photovoltaic modules in 2021.

This is one of the survey results conducted by the consulting firm Greener between December 2021 and January 2022 among 3,767 companies in the sector, to which Valor had exclusive access.

One of the reasons why Brazil is one of the largest consumers of equipment globally is the boom of this segment in the past year.

Demand for photovoltaic modules to supply the domestic market exceeded 9.7 gigawatts (GW), a growth of more than 100% compared to 2020, while global demand was 172.6 GW.

Greener director Marcio Takata estimates that Brazil has seen strong growth in recent years, as in 2017, Brazil’s share of the global market was only 0.9%.

“Between 2019 and 2020, Brazil had limited growth in equipment demand. In 2021, the country resumed its growth, and the volume of equipment has doubled compared to the previous year, representing 5.6% of global demand.”

The executive cites several factors that highlight Brazil’s importance in this regard, such as the increase in energy tariffs, a competitive market, and the entry into force of Law No. 14,300/22, which establishes the legal framework for self-generation of energy, which is expected to attract investments of around R$35 (US$6.6) billion to Brazil.

Due to international dynamics in the last year, equipment prices have increased by 8% due to freight costs caused by the lack of containers, port congestion, and pandemic defense measures.

This is the highest price increase recorded in the last two years. The rise in commodity prices, increased demand for components, and exchange rates have led to global supply problems for equipment.

There are 86 million consumer units in Brazil. However, according to the National Agency for Electric Energy (Aneel), distributed solar energy is present in just over 1% (900 thousand consumption units). It is mainly used in homes and businesses to reduce electricity bills.

With information from Valor

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